Parliament legislates the Income Tax Act, but much of the nitty gritty is regulatory. That supports your position for the most part; I’m just being pedantic.Until it's legislated that it's not. Parliament sets CRA rules and tax code, not random public servants.
Absolutely if the political will were there to provide housing to CAF to help attract and retain, and to not subject members to a tax hit because of it, that could be done.